Demurrage is a term not commonly recognized by most people, but commercial shippers are quite familiar with it, since it is a cost that represents liquidated damages for delays in port. In layman’s terms, that means if a ship is prevented for some reason for loading cargo or unloading cargo within an agreed-upon timeframe, the excess time beyond that agreed timeframe is the demurrage.
This is of course significant because that excess time is really a loss to the ship’s owner, unless and until it is paid by the client that chartered the shipping service. In the maritime industry, it is sometimes difficult for a shipping company to collect demurrage monies owed to it, even though the cost and the charge are very real elements of the shipping process.
Most businessmen understand the concept that time is money, and that’s what demurrage really is – time taken by a client in loading or unloading that is beyond what was stipulated, and this ties up the ship longer than stipulated.
The consultants at Baker Bloomberg & Associates understand the subtle nature of demurrage costs and how they are sometimes difficult to collect. Put our consultants to work on behalf of your company and let us recover those sums owed to you for excessive time in port. Our experts will find a way to recover those costs so your company is not forced into the poor business practice of absorbing those losses.